Page 107 - Hurst Adopted FY22 Budget

APPROVED FISCAL YEAR 2022 BUDGET
enterprise fund financial policies

Numerous financial policy guidelines are followed for the fiscal management of the
Enterprise Fund and enable the fund to maintain financial stability. Some of the most
significant guidelines pertaining to the budget and revenue presentation are as follows.

1. Revenues shall be set for budget and rate purposes to meet or exceed planned
expenditures.

2. The projection of "water loss and unaccounted for" due to common water system
conditions such as meter under-readings, firefighting, water line breakages and utility
line flushing’s should not exceed 5% without just cause or uncontrollable events.

• No free water will be allowed, including water used for municipal purposes such
as median irrigation and park irrigation.

• Meters will be tested and replaced on a regular basis.

 Large commercial meters will be tested on an annual basis and replaced
when the accuracy exceeds plus or minus five percent.

 Residential meters will be tested on an exceptional basis or random basis
and will be replaced every one million gallons or every ten years, whichever
comes first.

• Records of estimated, unmetered water uses will be maintained by the
utility department and the fire department, especially for major water main
breaks and major fires.

• The City will monitor for accuracy all metering points of water pumped into the
system from either wells or third party providers.

• The City will prepare an accounting of water quantities received and used on at
least an annual basis and prepare a report showing the effectiveness of the
water volume accounting program.

3. Any municipal customer shall be required to pay the cost of conveyance of
wastewater through the Hurst system, including operating costs and capital costs of
the portion of the system used and the administrative costs of managing a
wholesale customer contract.

4. Any municipal customer or commercial customer that introduces wastewater quality
loadings that exceed the allowed limits of the standard quality measurements,
especially biological oxygen demand (BOD) and total suspended solids (TSS) shall pay a
surcharge based on the cost of treating the excessive loadings.

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